Is HCA Healthcare Stock Underperforming the S&P 500?

HCA Healthcare, Inc. (HCA), with a market cap of $77.50 billion, owns and operates hospitals and related healthcare entities in the United States. Headquartered in Nashville, Tennessee, the company operates general and acute care hospitals that offer medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services, and outpatient services.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and HCA fits this criterion perfectly, exceeding the mark. As a key player in the medical care facilities industries, HCA benefits from long-term stability and steady revenue growth. 

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But it’s not all sunshine and rainbows for the stock as it has fallen 23.4% from its 52-week high of $417.14, recorded on Oct. 18. Over the past three months, HCA shares have slipped marginally, compared to the S&P 500 Index ($SPX), which declined 3.8% during the same period.

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HCA shares have declined 19.6% over the past six months and gained 1.3% over the past 52 weeks. By contrast, $SPX has surged 6.2% over the past six months and 15% over the past 52 weeks.

HCA has been trading below its 50-day moving average recently and under its 200-day moving average since mid-November, enforcing a bearish trend.

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Despite a grim price momentum over the past year, HCA stock surged 6.1% following its Q4 earnings release on January 27. HCA announced a 5.7% increase in its revenues, which amounted to $18.3 billion. Moreover, its EPS came in at $6.22, surpassing the Wall Street EPS estimates by 4.2%.

Its top rival, Tenet Healthcare Corporation (THC), has far exceeded, with its stock surging 22.2% over the past six months and 21.8% over the past 52 weeks.

Despite HCA’s underperformance over the past year, analysts are moderately hopeful, with a consensus rating of "Moderate Buy" from 24 analysts. Its mean price target of $383.05 implies a potential upside of 19.8% from the current market prices.